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The Value of Corporate Bond Listing

Author

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  • Cole, Brittany M.
  • Gullett, Nell S. Gullett

Abstract

We study the impact of bond exchange listing in U.S. publicly traded corporate bond markets. We find that listed corporate bonds have lower estimated bid-ask spreads than unlisted corporate bonds. Specifically, we show that listed bonds have estimated spreads of $0.14 lower than unlisted bond spreads. We find that execution venue matters for listed bonds, and that listed bond executions on the NYSE have higher trading costs than listed bond executions off-NYSE. We show that listed bonds are more volatile than unlisted bonds. Last, we study bond trading around earnings announcements and find a slight increase (decrease) in overall (institutional) volume on earnings announcement days compared to non-announcement days.

Suggested Citation

  • Cole, Brittany M. & Gullett, Nell S. Gullett, 2024. "The Value of Corporate Bond Listing," MPRA Paper 120601, University Library of Munich, Germany, revised 27 Mar 2024.
    • Handle: RePEc:pra:mprapa:120601
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    File URL: https://mpra.ub.uni-muenchen.de/120601/1/MPRA_paper_120601.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    corporate bond; bond market; exchange listing; bid-ask spread; earnings announcement;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • G0 - Financial Economics - - General

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